Your labor variance might be telling you something important. 📊
A client was seeing significant labor variances.
At first glance, it looked like a costing issue.
But the real problem was operational.
Workers were regularly working overtime, and the standard costs did not account for it.
That meant the variance was not just a number in a report.
It was a signal.
The business was using one set of assumptions to price, plan, and measure performance, while the floor was operating under a different reality.
That is where finance can add real value.
Not by asking, “Why is labor over budget?”
But by asking:
“What changed in how the work is actually getting done?”
Sometimes variance is not the problem,
It is the clue. 🔍
What are your numbers trying to tell you before they become a bigger issue? \
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